Despite a massive contraction in production since 2019, price recovery in the U.S. hemp market continues to be elusive. Wholesale hemp cannabinoid product prices remained depressed in June, with prices for all forms of extracted CBD tracked by Hemp Benchmarks – as well as those for novel, minor cannabinoids – declining across the board. The assessed price of CBD Biomass held steady this month at the all-time low point it fell to last month.
Wholesale prices for Crude CBD Oil and CBD Isolate both fell to new historic lows again this month, down 21% and 16%, respectively, from a year ago. The only type of extracted CBD to see a year-on-year price rise as of this month is Full Spectrum CBD Distillate, the price for which is up 20% from June 2022.
Prices for CBG Biomass, Isolate, and Distillate also all sank to record lows this month, eschewing the steadiness that had marked prices for some CBG products in the past year.
While we have seen some upticks in wholesale prices for extracted CBD and intoxicating isomers of THC at various points in the past 12 months, the overall trend remains largely negative. Production of cannabinoid biomass has contracted sharply and numerous reports have told of dwindling supplies of such material, but available inventory of extracted CBD apparently remains plentiful. There are currently no reliable estimates of the amount of unsold inventory on the market, but in our price collection and reporting we have not heard of shortages or difficulty finding wholesale extracted CBD from market participants. In fact, we regularly hear from firms that are looking to sell, suggesting that low prices will persist for the near future.
The observed price for Delta-8 THC Distillate declined for a second straight month, dropping 9% to $515 per kilogram in June. The range of reported prices spanned from $300 to $650 per kilogram, with both ends of the range declining from last month.
Delta-10 THC Distillate averaged $1,190 per kilogram in June, down 4% from the previous month. Observed deals for delta-10 THC ranged between $960 and $1,300 per kilogram this month.
The average observed price for CBN Isolate in June was $1,650 per kilogram, down 7% from the month prior. Individual transactions were reported to span between $1,300 and $2,000 per kilogram.
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June Production Update
Groundwork continues to be laid for future expansion of fiber sector, but early signs indicate overall 2023 hemp acreage will remain low, comparable to 2022.
Weather Outlook
U.S. drought picture improved in many regions after wet, cool spring; long-term forecasts indicate potential of above-average summer rainfall in Midwest.
Latin American Hemp Market Update
Sourcing and testing hemp genetics remains a supply chain bottleneck in the region; stakeholders provide snapshots of the hemp genetics situation in selected countries.
Hemp Industry & Research Update
Canadian cannabinoid firm Cronos exits U.S. hemp-CBD market.
Federal Regulatory Update
House bill would lighten compliance burdens on fiber and grain hemp farmers; FDA working groups explore pathways for CBD regulation.
State Hemp Program Updates
Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states
